LASACO Assurance Records N6bn Premium, N1.1bn Profit
LASACO Assurance Plc has recorded an 18 per cent increase in its gross premium income from the N5.1billion it realised in 2015 to N6.04 billion in 2016.
However, there was a decrease of 43 per cent in net premium income from N2.4 billion in 2015 to N1.4 billion in 2016, this was due to increase in unearned premium income and reinsurance cost.
Chairman of the company, Mrs. Aderinola Disu, who stated this at the companyâ€™s 37th annual general meeting, (AGM) in Lagos recently, claims expenses reduced by N84 million from N706 million in 2015 to N622 million in 2016, while operating expenses for the year also increased by N948 million from N1.509 billion to N2.458 billion in 2016.
â€œThe company achieved a profit before tax (PBT) of N1.14 billion for the financial year ended December 2016. This represents an increase of 183 per cent when compared with the N404 million achieved in 2015,â€ she said.
LASACO ended the year with profit after tax of N944.461 million, up by 233 per cent to N944.461 million, from N283.320 million in 2015.
â€œ Total assets moved from N16.1 billion in 2015 to N 19.2 billion in 2016 while shareholdersâ€™ fund increase d by N1.27 billion from N6.578 billion to N7.851billion,â€ the chairman added.
Based on the performance, the directors recommended a dividend of three kobo per share for the 2016. The dividend was approved by the shareholders and they would begin to receive it from July 14, 2017.
Disu explained that the company has taken dynamic and pro- active steps to improve the brand positioning in the market by engaging consultants responsible for developing a refreshed brand identity for the company.
She also stressed that the company is reorganizing its business model to avoid dependence on oil and gas insurances by developing competencies in agricultural insurance as the next growth area of the economy.
â€œThe company is equally reviewing the branch network to ensure presence in the six geo-political zones of the country for better coverage and productivity,â€ she said.
Speaking on the companyâ€™s performance, one of the shareholders noted that a lot of homework still needed to be done on the insurance sector.
â€œI am impressed with the results though they need to be aggressive for them to maintain and improve on the impressive bottom line,â€ the shareholder said.